Advice needed on saving

bobmo_2

Hi, I am hoping someone can help me get the best rates for my savings.

I currently have an ISA with Natwest with about £2.5k in it. I also have two regulare saver accounts. One with HSBC which pays 8% and one with HBOS which pays 7%.

I am not expecting to need the money for a while so I don't mind locking it in, it also stops me spending it. So my question is this:

I am now earning 5.07% on my ISA so will I earn more interest on the regular savings than I do on my ISA after paying the tax. I am a basic rate tax payer. There is no withdrawal penalty on the ISA so I could drip feed the regular savers from my ISA.

Saving is so hard at the moment!

Thanks in advance for any advice.

Lokolo

Yes you can do that but what happens when you stop the regular saver and the best rate you can get is 3%? You waste this years ISA and waste next years as you will then fill that back up with the money from the regular savers...

bobmo_2

Lokolo wrote: »

Yes you can do that but what happens when you stop the regular saver and the best rate you can get is 3%? You waste this years ISA and waste next years as you will then fill that back up with the money from the regular savers...

Never thought of that. I reckon rates can't stay this low for too long into next year. Also, my wife doesn't yet have an ISA so I will be opening one for her soon.

So good point but how about the short term best home for my money? Am I better off dripfeeding?

bobmo_2

sloughflint wrote: »

Are you sure your rate is not 4.41% variable? The 5.07% is for > £27 000

Yeah your right, it is 4.41%.

So it must be better paying into the 8% reg saver but I already use this allowance from my salary. So is it worth topping up the 7% reg saver from my ISA if I don't reach the monthly limit.

We are probably talking pennies but I want to make sure that the bank make as little from as possible.

bobmo_2

Ok, I think I see what your saying. If I take money from my ISA now then its money that I can never pay back in and I will suffer in future years?

I have already reached my limit for this year as I thought I could withdraw money and then put it back in.

Lokolo

Indeed ^^ as above. You could open an instant access savings account to. If you come into some money or want to save some more, you can put it in that savings account, then you can also dripfeed that!

It depends how much you want to save and for how long really as well.

bobmo_2

sloughflint wrote: »

In that case there is no option if you've maxed out your ISA. Enjoy the high RS rate:D

But should I move money out of my ISA in months where i don't reach the RS limit?

Basically will I earn more on 7% interest paying tax or 4.41% not paying tax.

Lokolo

Do as I said. If you have money left over put that in another savings account (crap if you want, doesn't matter) and then use that money. Obviously if things get really desperate yeh you're going to have to dip in ISA, but you really want that to be your last resort.

bobmo_2

Ok thanks guys. I am going to leave the ISA, fill up the RS and any left over chuck in Tesco.

fullstop

bobmo wrote: »

Ok thanks guys. I am going to leave the ISA, fill up the RS and any left over chuck in Tesco.

Good luck with Tesco, reading the thread about them the account seems a nightmare to open and get running

bobmo_2

fullstop wrote: »

Good luck with Tesco, reading the thread about them the account seems a nightmare to open and get running

Already done, had no problems.